Trade War With China Will Hit OEM Manufacturers First

by Mike Meiresonne, IQS Directory

As trade relations between China and US deteriorate, OEM
manufacturers and their metal suppliers are caught in the middle.

Who is affected first?

Metal Suppliers

Jim Netti from Metalmen Sales says “when the possibility of tariffs were announced,
many buyers, concerned about the security of their supply chain and motivated
by the desire to purchase at pre-tariff prices, rushed to place orders for the
existing inventory. And price in effect (P.I.E.) clauses were put into place
lending an air of discomfort.

As a result there are many manufacturers who are
unable to source for production, or must wait long lead times, or must pay
premiums.”

The far reaching impact to the OEM market will be significant in
regards to pricing and inflation, supply shortages, and growth and employment
for the OEM manufacturing industries. A quick resolution to the trade
imbalances will solve many unseen economic manifestations that will occur due
to these structural artificial impediments to the overall economy.